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Is Israel the ‘Start-Up Nation’ Because of Its Security Situation?
The State of Israel is unique — it enjoys significant economic growth while maintaining one of the highest defense burdens of any country in the world. The reason for the high defense expenditure is that Israel has been engaged in a fight for its very existence from the day of its formation. Concurrently with the ongoing threat, Israel’s economy has grown rapidly, averaging around 4% annual growth over the last two decades.
Israel’s growth strategy is directly tied to investments in research, development, and technology. Science and technology have always been perceived by Israel as key factors in the power equation between itself and its surrounding adversaries. Israel’s expenditure on research and development as a proportion of GDP is one of the highest in the world at approximately 5%. The country’s emphasis on science and technology is evident in the high density of scientists and engineers within its population, which easily competes with that of any developed European country.
In its early years, Israel attempted to address its pressing security challenges by developing a national security strategy that emphasized qualitative parameters to neutralize the quantitative gaps vis-à-vis the surrounding enemy states. Soon after the establishment of the state, David Ben-Gurion — Israel’s first prime minister and minister of defense — articulated that due to Israel’s numerical inferiority, it must strive for qualitative superiority. Israel identified science and technology as critical for the accomplishment of this strategy.
Ben-Gurion further asserted that scientific research and technological development were essential not only for security needs, but also for the development of Israel in terms of agriculture, industry, and education. His plan was to enlist the best scientific minds of the Jewish people and to motivate young scientific talents to dedicate their lives to scientific research. They were to be provided with advanced equipment and well-equipped laboratories in fields such as physics and biology, with the expectation that they would align their research efforts towards the security and development of the country.
Given that “big science” involves long development cycles, high uncertainty, substantial risk, and a considerable chance of failure, engaging in extensive private-commercial science and technology projects without state intervention was exceptionally challenging, if not impossible, in the initial decades of Israel’s existence. The necessity for government funding stands out as a primary obstacle for smaller nations seeking to cultivate such capabilities. However, despite the challenges it faced and its status as a small state, Israel managed to overcome these barriers, successfully constructing and advancing a significant technological infrastructure. Israel attributes much of this success to making technological superiority a cornerstone of its national security strategy, which led in turn to the establishment of a well-developed and technologically advanced defense sector.
The end of the 20th century saw a dramatic change in the world’s technological landscape. State-owned technological innovation led primarily by the defense sector shifted towards innovation led by the entrepreneurs and investors of the private sector, establishing what we know today as the start-up age. Today, annual investment in commercial startups worldwide is significantly higher than investment in defense R&D. The private commercial sector dominates technological innovation and the defense sector often “feeds” on these innovations for its own applications, rather than the other way around.
Following this shift in technological dominance and leveraging its highly developed science and technology infrastructure, Israel has managed to position itself as a global source of technological innovation and business entrepreneurship, and is often referred to accordingly as the “Start-Up Nation.” Israel has many hi-tech companies listed on the NASDAQ, the second-largest stock exchange in the world after the New York Stock Exchange. Israel’s presence on the NASDAQ is second only to that of the United States and China. As of the end of 2022, there were over 130 Israeli companies listed on the NASDAQ, which is comparable to those of the British, French, and German companies on the exchange combined.
In the last decade, Israel’s investment in research and development has been the highest in the world relative to GDP by a significant margin. Additionally, Israel’s venture capital fundraising rate is among the highest globally on a per capita basis, and the success rate of its unicorn companies is particularly high. Between 1999 and 2014, approximately 10,000 start-up companies were established in Israel, with 2.6% achieving an annual profit of at least $100 million. In the Global Competitiveness Report for 2018-19, which ranked 141 countries, Israel was first in entrepreneurial culture and second in availability of venture capital. In 2021, investments in Israeli startups reached an unprecedented peak of $26 billion.
Given this context, it might seem reasonable to argue that aligning Israel’s highly developed technological ecosystem with its unique security context may have been relevant in its early decades, but has grown less so with time. This might appear on the surface to be true, as Israel’s economy seems to have extricated itself over the last few decades from the clutch of the defense sector and transformed the country into the “Start-Up Nation” it is today.
But the argument is inaccurate, as the connection between the Israeli hi-tech industry and the Israeli defense sector remains robust. To appreciate why, we need to delve into the Israeli technological ecosystem.
The ties to the defense system, particularly to the IDF, play a pivotal role for the Israeli hi-tech industry. In Israel, most citizens undergo mandatory military service, and after their discharge, many continue on active reserve duty. There is thus a continual interaction between the Israeli civilian and military domains.
This ongoing connection significantly empowers entrepreneurs serving in the IDF’s technological units to introduce novel technologies and devise solutions that can benefit the defense system. These entrepreneurs possess an in-depth personal understanding of that system and can identify its needs, weaknesses, and vulnerabilities. They utilize the training and extensive knowledge they acquired during their military service in the development process to great effect.
In the Israeli hi-tech sector, many of the start-up companies specializing in intelligence and cybersecurity are predominantly staffed by graduates of military technological units like Units 8200 and 81. These start-ups are involved in advancing defense-related technological projects, delivering training to defense entities, and providing prompt responses to the system’s operational needs. In many cases, the products offered by these companies are not generic but are meticulously tailored to meet specific operational requirements. Many projects undertaken by these companies are at the forefront of technological advancement.
To comprehend just how profound is the influence of this phenomenon on the Israeli hi-tech industry, we should examine the two units mentioned above, 8200 and 81. In the late 1990s, the IDF recognized the pivotal role of the cyber domain and took on the challenge of identifying and training suitable human resources. The IDF accordingly instituted unique advanced selection processes to recruit high-quality personnel. The innovative training program and courses transformed these young recruits into true experts in their fields.
Between 2003 and 2010, 100 or so officers and soldiers who completed their service in Unit 81 established around 50 start-up companies, collectively raising over $4 billion. Many of these companies continue to yield substantial revenues, and some have achieved successful exits. Unit 8200 was a major contributor to the emergence of many cybersecurity companies, including the legendary Check Point; Adallom, acquired by Microsoft for $320 million; and Armis, acquired by Accenture for $1.1 billion.
More than 1,000 start-ups have been founded by 8200 alumni. Its graduates are involved not only in cybersecurity start-ups but in many other fields as well, ranging from Waze to Wix to SolarEdge. These examples represent only a small fraction of the broader trend. It is no exaggeration to assert that graduates of these units have significantly shaped the Israeli hi-tech sector over the past decade. These units are a true powerhouse propelling the Israeli hi-tech sector, with a significant portion of the technology they develop flowing back to defense applications.
When analyzing the unique relationship between the IDF and the private commercial hi-tech sector in Israel, we can see that Israel’s unique security situation has created a mechanism through which both parties are so interwoven as to make it difficult at times to tell them apart. It is in Israel’s best interest to continue to nurture this unique relationship, which is beneficial for Israel’s prosperity as well as its security.
Nir Reuven is a researcher at the BESA Center, an engineer, and a former officer in the Merkava development program (the main Israeli battle tank). He has held management positions in the Israeli hi-tech industry and is an expert on technology. Currently he is co-manager of the Sapir College Innovation and Entrepreneurship Center. He is working on his Ph.D. and lectures at Bar-Ilan University. A version of this article was originally published by The BESA Center.
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Northwestern University Touts Progress on Addressing Campus Antisemitism Amid Federal Scrutiny
Signs cover the fence at a pro-Palestinian encampment at Northwestern University in Evanston, Ill. on April 28, 2024. Photo: Max Herman via Reuters Connect.
Northwestern University on Monday touted its progress in addressing the campus antisemitism crisis, issuing a statement containing a checklist of policies it has enacted since being censured by federal lawmakers over its handling of pro-Hamas demonstrations which convulsed its campus during the 2023-2024 academic year.
“The university administration took this criticism to heart and spent much of last summer revising our rules and policies to make our university safe for all of our students, regardless of their religion, race, national origin, sexual orientation, or political viewpoint,” the statement said. “Among the updated policies is our Demonstration Policy, which includes new requirements and guidance on how, when, and where members of the community may protest or otherwise engage in expressive activity.”
The university added that it has adopted the International Holocaust Remembrance Alliance (IHRA) definition of antisemitism, a reference tool which aids officials in determining what constitutes antisemitism, and begun holding “mandatory antisemitism training” sessions which “all students, faculty, and staff” must attend.
“This included a live training for all new students in September and a 17-minute training module for all enrolled students, produced in collaboration with the Jewish United Fund,” it continued. “Antisemitism trainings will continue as a permanent part of our broader training in civil rights and Title IX.”
Other initiatives rolled out by the university include an Advisory Council to the President on Jewish Life, dinners for Jewish students hosted by administrative officials, and educational events which raise awareness of rising antisemitism in the US and across the world. Additionally, Northwestern said that it imposed disciplinary sanctions against several students and one staff member whose conduct violated the new “Demonstration and/or Display Policies” which regulate peaceful assembly on the campus.
“In closing, although Northwestern has made significant progress in the fight against antisemitism on campus, the university remains vigilant and will continue to do what is necessary to make our campus safe,” the statement concluded. “Importantly, the fight against antisemitism is NOT [sic] a zero-sum game. All members of our communities on campus — all religions, races, national origins, genders, sexual orientations, and political viewpoints — deserve to feel safe and know that our rules will be enforced to protect them against hate, discrimination, harassment, and intimidation. Northwestern is committed to this principle.”
As previously reported by The Algemeiner, Northwestern University struggled for months to correct an impression that it coddled pro-Hamas protesters and acceded to their demands for a boycott of Israel in exchange for an end to their May 2024 encampment.
University president Schill denied during a US congressional hearing held that year that he had capitulated to any demand that fostered a hostile environment, but his critics noted that part of the deal to end the encampment stipulated his establishing a scholarship for Palestinian undergraduates, contacting potential employers of students who caused recent campus disruptions to insist on their being hired, creating a segregated dormitory hall that will be occupied exclusively by students of Middle Eastern and North African (MENA) and Muslim descent, and forming a new advisory committee in which anti-Zionists students and faculty may wield an outsized voice.
The status of those concessions, which a law firm representing the civil rights advocacy group StandWithUs described as “outrageous” in July 2024, were not disclosed in Monday’s statement.
Northwestern University is not the only school creating distance between itself and the anti-Zionist movement, a step many colleges have taken in response to US President Donald Trump’s vowing to cut the flow of taxpayer funds supplementing their budgets should they refuse to crackdown down on illegal protests and antisemitism. Following the Trump administration’s cancelling of over $400 million in federals contracts and grants awarded to Columbia University, former interim president Katrina Armstrong proposed a list of reforms the school would agree to undertake — in areas ranging from undergraduate admissions to campus security — to restore the funds.
Armstrong later resigned from her position, saying in a statement which explained the decision that she wishes to return to her role as executive director of the university’s Irving Medical Center, as well as several other positions she holds.
Meanwhile, Harvard University recently fired a librarian whom someone filmed ripping posters of the Bibas children, two babies murdered in captivity by Hamas, off a kiosk in Harvard Yard and denounced him as “hateful.” Additionally, it paused a partnership with a higher education institution located in the West Bank, a move for which prominent members of the Harvard community and federal lawmakers had clamored in a series of public statements. The Trump administration initiated a review of $9 billion in taxpayer funds it receives anyway, prompting interim president Alan Garber to defend Harvard’s handling of the issue.
“For the past fifteen months, we have devoted considerable effort to addressing antisemitism,” Garber said. “We have strengthened our rules and our approach to disciplining those who violate them. We have enhanced training and education on antisemitism across our campus and introduced measures to support our Jewish community and ensure student safety and security.”
Northwestern University is in the Trump administration’s crosshairs too. It is one of 60 universities being investigated by the Department of Education’s Office for Civil Rights over its handling of campus antisemitism, a project that will serve as an early test of the administration’s ability to perform the essential functions of the agency after downsizing its workforce to increase its efficiency.
“The department is deeply disappointed that Jewish students studying on elite US campuses continue to fear for their safety amid the relentless antisemitic eruptions that have severely disrupted campus life for more than a year,” Education Secretary Linda McMahon said in March. “US colleges and universities benefit from enormous public investments funded by US taxpayers. That support is a privilege, and it is contingent on scrupulous adherence to federal antidiscrimination laws.”
Follow Dion J. Pierre @DionJPierre.
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Pressure Mounts on UN Members to Block Reappointment of Controversial Anti-Israel Official
Francesca Albanese, UN special rapporteur on human rights in the Palestinian territories, attends a side event during the Human Rights Council at the United Nations in Geneva, Switzerland, March 26, 2024. Photo: REUTERS/Denis Balibouse
The United Nations is facing growing pressure to block the reappointment of Special Rapporteur Francesca Albanese, who has an extensive history of using her role to denigrate Israel and seemingly rationalize the terrorist group Hamas’s attacks against the Jewish state.
The UN Human Rights Council (UNHRC) is set to reappoint Albanese for another three-year term on Friday, despite calls from several countries and NGOs urging UN members to oppose her reappointment due to her controversial remarks and alleged pro-Hamas stance.
Since taking on the role of UN special rapporteur on human rights in the Palestinian territories in 2022, Albanese has been at the center of controversy due to what critics, including US and European lawmakers, have described as antisemitic and anti-Israel public remarks.
In the months following the Hamas-led Oct. 7, 2023, atrocities, across southern Israel, Albanese accused Israel of perpetrating a “genocide” against the Palestinian people in revenge for the attacks and circulated a widely derided and heavily disputed report alleging that 186,000 people have been killed in Gaza as a result of Israeli actions.
She has also previously made comments about a “Jewish lobby” controlling America and Europe, compared Israel to Nazi Germany, and stated that Hamas’s violence against Israelis — including rape, murder, and kidnapping — needs to be “put in context.”
Last year, the United Nations launched a probe into Albanese for allegedly accepting a trip to Australia funded by pro-Hamas organizations.
In the past, she has also celebrated the anti-Israel protesters rampaging across US college campuses, saying they represent a “revolution” and that they give her “hope.”
On Monday, US Rep. Brian Mast, chair of the House Foreign Affairs Committee, sent a letter to the president of the UNHRC, Ambassador Jürg Lauber, to express his strong opposition to Albanese’s reappointment.
In the letter, Mast claimed that Albanese has failed to act “in an independent capacity with a professional, impartial assessment, and maintain the highest standards of efficiency, competence, and integrity.”
“Ms. Albanese unapologetically uses her position as a UN special rapporteur to purvey and attempt to legitimize antisemitic tropes, while serving as a Hamas apologist,” the letter read.
“In her malicious fixation, she has even called for Israel to be removed from the United Nations while likening Israel to apartheid South Africa,” Mast wrote in a letter signed by six fellow lawmakers. “Regrettably, Ms. Albanese’s rhetoric has perverted the very institution and its foundational principles in which she was appointed to serve.”
Governments worldwide, including France, the UK, Germany, Canada, and the Netherlands, have condemned her statements as antisemitic and urged that she not be given another term in her role.
Last month, 42 members of the French Parliament publicly urged the government to oppose Albanese’s reappointment, arguing that it “would send a regrettable signal to victims, human rights defenders, and states committed to credible multilateralism.”
This week, British Labour Member of Parliament David Taylor also objected to Albanese’s reappointment, saying “there is no place for such alleged antisemitism on the international stage.”
“Albanese’s response to the largest antisemitic massacre of the 21st century was to describe it as ‘a response to Israel’s oppression,’” Taylor told the Jewish Chronicle. “She described Israel as being a ‘settler colonial conquest.’”
“Making statements of this nature in a UN capacity is abhorrent and does so much damage to communities already torn apart by horrific violence, going against everything the United Nations stands for,” Taylor said.
Human rights groups and NGOs have also campaigned to prevent the anti-Israel rapporteur from receiving a second term.
UN Watch, a Geneva-based NGO, has organized a petition against her reappointment, which has garnered over 83,000 signatures.
Last month, Maram Stern, executive vice president of the World Jewish Congress, sent a letter to the president of the UNHRC urging him to reject the renewal of Albanese’s mandate, citing what she described as the UN official’s history of anti-Israel animus and antisemitic statements.
“Ms. Albanese has repeatedly made public remarks that propagate harmful antisemitic tropes, question the legitimacy of the State of Israel, and employ rhetoric that undermines the credibility of the Human Rights Council itself,” the letter read. “Her persistent lack of objectivity and failure to uphold a balanced and impartial approach required of her as special rapporteur compromises her credibility as an independent expert.”
The American Jewish Committee (AJC) also urged UN Members to reject Albanese’s second term, saying she “has systematically demonstrated a troubling pattern of conduct and expression that is incompatible with the responsibilities, neutrality, and integrity expected of a UN special rapporteur.”
“Her actions not only betray the victims of terrorism and antisemitism but also are a stain on the credibility of the Human Rights Council itself,” the AJC wrote in a letter.
The post Pressure Mounts on UN Members to Block Reappointment of Controversial Anti-Israel Official first appeared on Algemeiner.com.
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Three Jewish Coaches Lead Teams in NCAA Men’s Basketball Tournament Final Four
Florida Gators head coach Todd Golden and Auburn Tigers head coach Bruce Pearl talk before the game as Auburn Tigers take on Florida Gators at Neville Arena in Auburn, Ala., on Saturday, Feb. 8, 2025. Photo: USA TODAY NETWORK via Reuters Connect
The men’s 2025 NCAA Tournament Final Four bracket includes four No. 1 seed teams, three of which have Jewish coaches who will lead the way in the two national semifinals taking place on Saturday.
Auburn University Tigers head coach Bruce Pearl has contributed Auburn’s success in the NCAA in part to God and his Jewish faith. He described Israel as the “ancestral homeland for the Jewish people” and called for the release of American-Israeli Edan Alexander from Hamas captivity at a post-game conference last month. He also took the Auburn team on a trip to Israel, where they made stops at the Western Wall and Yad Vashem – The World Holocaust Remembrance Center.
The Tigers will compete on Saturday in the NCAA Tournament Final Four against the Florida Gators whose Jewish coach, Todd Golden, is an Israeli citizen who previously played two years professionally for Maccabi Haifa in Israel.
In 2009, Golden was co-captain of the USA Open Team, coached by Pearl, that won gold at the Maccabiah Games, which is an international multi-sport event for Jewish and Israeli athletes. Golden has been the coach of the Tigers for two seasons, but prior to that he was the assistant coach at Columbia, the head coach at San Francisco, and even worked under Pearl. Golden was director of basketball operations for the Auburn staff for the 2014-15 season and was promoted to assistant coach for the 2015-16 campaign.
Duke and Houston also play each other on Saturday in the Final Four. The head coach of the Duke Blue Devils, Jon Scheyer, also formerly played in Israel and holds Israeli citizenship. He played professionally for Maccabi Tel Aviv from 2011-12. In October 2023, not long after the start of the Israel-Hamas war, Scheyer commented on the conflict and said in part: “My heart breaks for the people in Israel — that have hostages, American lives that are taken, mourning loved ones.” Scheyer is leading Duke to the Final Four in only his third year as head coach.
The Houston Cougars – the fourth men’s team competing in the Final Four – do not have a Jewish coach, but they have a player who was born in Israel and played for Israel’s national youth squad. Guard Emanuel Sharp, who is the son of Derrick Sharp, was part of Israel’s under-16 national basketball team and also played for Maccabi Tel Aviv for over a decade.
This year’s Final Four have a combined record of 135-16. Since seeding began in 1979, this is only the second time in history that all four No. 1 seeds advanced to the Final Four. It previously happened in 2008. Larry Brown was the last Jewish coach to win the NCAA Tournament when he led Kansas to the victory in 1988.
The 2025 NCAA Tournament Final Four begins on Saturday, with two national semifinals taking place at the Alamodome in San Antonio, and ends on Monday with the national championship.
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